Competitive Advantages
Given the Company’s commitment to execute its business plan, the Company will be developing the following competitive advantages in relation to its competitors:
Unique Patent Strategy – The versatility of quantum dots and other nanostructures allows for applications beyond solar cell manufacturing, and Square One Solar is poised to take advantage of the opportunities with a unique patent strategy. Over the long term, the Company is expected to file new patents every three months. The Company has the technological base to create the IPs, but is constantly looking to add expertise to the management team and advisory board.
Ability to Expand Quickly – The Factory-in-a-Box concept allows facilities producing Square One’s solar cells to be set up quickly relative to competitors. The modular nature of the components enables the Company to configure the factory solution to suit the needs of its industrial partners. Compared with the up to four year set-up time for a conventional solar factory, the Company’s factories are projected to start production after six to twelve months.
Low Production Cost – Because the Company employs simple screen printing technology to manufacture the solar cells, the need for skilled labor is minimal. This will allow the Company to compete on price and pass on the savings to customers.
High Efficiency Rate - The patent pending technology developed by the Company is capable of producing solar cells with a theoretical maximum of 63% efficiency, significantly higher than the 11% to 16% of the conventional solar cells. Once the patent has been approved, the Company’s engineers will concentrate on increasing efficiency and management expects the solar cells to be at 15% to 35% efficiency by the time of production.
Stability of Raw Materials – Quantum dots can be manufactured through simple chemical reactions, and custom-made quantum dots are commercially available from several established sources. With silicon prices expected to stay at the current high levels or even increase, Square One is less susceptible to price spikes and supply disruptions as compared to its competitors.
Great Support from the Government – Square One Solar is able to take advantage of the Scientific Research and Experimental Development (“SR&ED”) program of the Canadian federal government, where tax incentives are given to encourage Canadian businesses of all sizes and in all sectors to conduct research and development in Canada that will lead to new, improved, or technologically advanced products or processes. Management estimates that the Company should receive tax credits for approximately 40% of the research and development expenses, which amounts to $50,000 to $60,000 for the previous fiscal year. This will be an ongoing contribution.
Strong Technical Support – Square One Solar is fortunate to be located in the Vancouver area of British Columbia, where the local technical resource pool is strong. The Company will be able to draw upon this resource pool to maintain a technological edge. | 
